Global Supplier Rationalization in Indirect Procurement

MANAGING MULTIPLE SUPPLIERS?

Supplier A

COMPLEXITY RISK COST

Single Supplier Supplier B Supplier C

SAVINGS FROM

SUPPLIER

RATIONALISATION

Greater

Leverage

BENEFITS OF SUPPLIER RATIONALIZATION

HARD COST BENEFITS SOFT COST BENEFITS

Greater

Spend

Economies of Scale

Lower Invoice

Processing & PO Costs

Reduced

Admin

Increased

Compliance Increased Spend

Management

BENEFITS OF A RATIONALIZED SUPPLIER

Centralised Reporting Trusted Partner who Understands you Economies of Scale

WORKING WITH THE RIGHT SUPPLIER

Analyse Categorized Spend

Supplier

A

Supplier

B

Supplier

C

Look for Overlap Compare

A B C

Support the change management

aspect of the process?

Does the supplier…

Does the supplier

match your locations?

Proactively partner with you to

identify savings opportunities?

Streamline, centralize and

consolidate supply spending

EXAMPLES OF HIGH OPTIMIZATION SUCCESS

Leading

privately-held

mortgage

company

Complicated procurement

& low efficiency

Supplier

A Supplier

B Supplier

C Supplier

D

!

Co

mp

any

size

Time

Leading

privately-held

mortgage

company

EXAMPLES OF HIGH OPTIMIZATION SUCCESS

Supplier

A Supplier

B Supplier

C Supplier

D

Employees can now purchase from one

place, with one consolidated invoice

€ € € €

€

80% reduction

in processed

invoices

40 hours

saved per

month

$30,000

reduction per

month in

supply costs

EXAMPLES OF HIGH OPTIMIZATION SUCCESS

“As our business grows, it’s good to have a supply partner

who can scale up with us and be that virtual one-source

provider to enable all of our employees to work efficiently

and productively.”

20 suppliers

1 supplier

Theresa Cherry, Senior Vice President

Production at Guild Mortgage Company 1,800 employees

OTHER EXAMPLES OF CONSOLIDATION SUCCESS.

Well known fashion retail chain

Single-source solution

Office supplies Retail supplies

Well known hotel chain

20% saving

annually 4 supplier

tender process

Product rationalization

exercise

Additional

8% saving

Single-source solution

RATIONALIZATION: SOME HARD PROOF

Order Request

Offer Comparison

Follow

Up

PREPARATION

Identify Need Order

Requisition

ORDER

Placing

Purchase

Order

DISTRIBUTION

Reception of

Goods &

Receipts

Internal

Distribution and

Storage

PAPERWORK

Invoice

Handling

Payment

Handling

€0,57 €0,57 €0,57 €0,57 €0,57 €0,57 €0,57

Cost per minute:

15 10 7 15 20 10 10

Time in minutes:

€8,59 €5,72 €4,01 €8,59 €11,45 €5,72 €5,72

Actual cost:

Total impact

87

€49,81

38,854 before

RATIONALIZATION: SOME HARD PROOF.

Process time savings:

26,093 saved orders x 87 minutes

order process time

4,729 working days

p.a.

Ord

ers

12,761 after

26,093 saved orders

€49,81

order process

cost

87 minutes

order process

time

1,3 million

saved p.a.

€ 4,729 working

days saved p.a.

SUPPLIER RATIONALIZATION BENEFITS: A RECAP.

Decreased business risk through

standardization

Supplier

A Supplier

B Supplier

C Supplier

D

Increased

leverage

Economies

of scale

€ € € €

Single

supplier

€ Decreased administrative burden

Decreased time setting up new

branch locations

Improved compliance

MAKING RATIONALIZATION WORK.

Find the

right supplier

Bite off one

chunk of

spend at a

time.

Communicate

- a lot.

Change

management

Establish

accountability

Successful

consolidation

One source solution

Consolidated contract for all

your business consumables

Lowest total

programme cost

A tailored program, at the

right price for you

Dedicated trusted advisor

Single point-of-contact for

expert advice

STAPLES ADVANTAGE: YOUR TRUSTED PARTNER

Technology Print

solutions

Promotional

products Facilities

products

Furniture Bespoke

products

“Every product your business needs to succeed”

GLOBAL PROGRAMME

26 countries

direct

13 3rd

party

providers

Thank you